Huatai Securities pointed out that since April, a series of capital market policies have been continuously introduced, and the market ecology has been gradually optimized. Looking ahead, we believe that the wealth management and capital intermediation business is expected to gradually recover as market sentiment recovers; the short-term performance of the investment banking business is still under pressure, and mergers, acquisitions and restructuring are expected to usher in new opportunities; further standardization of the derivatives business is conducive to improving the stability of investment performance, and with the recovery in market sentiment, the investment business is expected to show good performance flexibility. Valuation in the securities sector is still low, and public fund positions were pulled back in the first quarter of 2024. Regulation encourages high-quality brokerage firms to become better and stronger through mergers and acquisitions, and is optimistic about structural opportunities in the sector driven by policy.